ProMetic to acquire Telesta in all share transaction

Canada-based ProMetic Life Sciences (TSX: PLI) has entered into a binding agreement to acquire Telesta Therapeutics (TSX: TST) by way of a plan of arrangement under the Canada Business Corporations Act. Under the terms of the deal, ProMetic will acquire all of the share capital of Telesta at a share price of $0.14 payable in ProMetic common shares.

Telesta is a Montreal-based biotechnology company focused on the licensing/acquisition and development of transformational therapeutics for the treatment of serious human diseases such as cancer, immune diseases and targeted rare diseases.

Completion of the acquisition is subject to the approval of Telesta's shareholders and a number of customary closing conditions for a transaction of this nature, which include court and regulatory approvals (including the approval of the Toronto Stock Exchange). The Acquisition is expected to close in early November, 2016. The Agreement also contains customary deal protection mechanisms, including no shop provisions and a mutual $2.5 million breakup fee payable by Telesta or ProMetic in specified circumstances.